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Question 44 Not yet Gerina Inc. is expected to pay a cash dividend of $2.50 this coming year. The stock is currently selling for $56.00

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Question 44 Not yet Gerina Inc. is expected to pay a cash dividend of $2.50 this coming year. The stock is currently selling for $56.00 per share and the firm's expected constant growth rate is 5,00%. If Axelrod, Inc. issues new.common stock, its rotation costs will be 54.00 per share. What will the firm expect its cost of new common stock to be? answered Points out of 1 P Rag question Select one: O A. 7,5196 OB. 8,64% O C. 9.81% D. 10.05% Question 45 The cost of equity capital in the form of new common stock will be higher than the cost of retained earnings because of Tot yet swered Dints out of 1 Flag question Select one: O A. the existence of taxes. O B. the existence of flotation costs. O Cinvestors unwillingness to purchase additional shares of common stock O D. the existence of financial leverage

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